Before you remodel a leased space, review your coverage If you lease an office and make improvements to the space—such as interior remodeling—you need to review your insurance coverage. Generally, if you've installed any after-the-fact alterations, it's up to you, not the property owner or landlord, to insure them.

For example, let's say you've leased space for an auto garage and then install a vehicle lift. The lift may not be covered. If you leased space for your beauty salon or florist shop and install new sinks and counters, you should determine whether you need to insure those items too.

In the insurance industry, we call these changes improvements and betterments. Essentially, it means that you're responsible in a leased space for insuring any alterations you have made, such as flooring, light fixtures, wall coverings, wiring, plumbing, cabinets, shelving or anything else that is attached to the ceiling, walls or floors.

Because these improvements might be essential to your business operations, it's important to understand who has responsibility for replacing them if they become damaged. If you do not update your business property insurance to cover these improvements, you could be underinsured and without the means to fully repair or replace the improvements if a covered loss occurs.